Salentino has told the industry that the lack of mainstream mortgage lenders providing interest-only products has seen a large group of borrowers unable to raise funds.
The packager adds that the flexible criteria and lack of fees provide a different option for potential borrowers looking to raise funding.
“Advisers are in danger of missing a huge opportunity. Secured loans represent a far better and more sustainable business stream than most other supplementary income earners that have been marketed to intermediaries, such as will writing and debt management,” he said.
“For many brokers we have spoken to, the door that had been closed on their clients trying to capital raise by remortgaging, we were able to reopen when we explained the feasibility of using a secured loan, which sits alongside the mortgage and provides the liquidity and flexibility which clients need.”
Gary Bailey, sales and marketing director at Blemain Group, commented: “The market for secured loans has already increased by 19% this year with completions running at over £30m per month.
“Part of that is due to the underlying value that secured loans represent in terms of cost effectiveness, no upfront fees, convenience and transparency.
“However, with the growing number of homeowners unable to remortgage, secured loans are being recognised by intermediaries as one of the best ways to provide much needed finance for those clients and build a valuable source of future business.”
